Amidst continuous supply chain issues, dwindling investment funds, and talent shortages – dynamic Aussie companies are forging ahead with outward expansion plans. Recent data shows that over two-thirds or 69 per cent of small-to-medium Aussie businesses plan to operate outside of Australia by 2027.
This comes despite a fractious economy and generally tough business climate, with the ongoing global talent shortage being a top business woe. The National Skills Commission identified a sharp spike in skills shortages, up from 19 per cent of occupations in 2021, to 31 per cent in August 2022. This was described at the time as “a staggering jump” by Skills Minister Brendan O’Connor. The total numbers of jobs advertised were also up 37 per cent year-on-year.
From the 2022 federal budget revealed this October, discussions stemming from the Jobs and Skills Summit are ongoing, with states attempting to agree to a $3.7 billion funding agreement to promote job creation and skilled migration, all amidst sharp interest spikes over recent times.
To navigate choppy waters and remain competitive, businesses are looking at smarter, more efficient ways of supporting their needs and growth. Using an Employer of Record (EOR) such as G-P, has fast been gaining momentum as the savvier, more efficient way for global expansion as it allows for the hiring of employees in other countries immediately without the need to establish a legal entity in that country.
Based on our data at G-P, Aussie organisations are currently looking at hiring talent in new markets including New Zealand, the US, EMEA and Singapore as priority targets. This suggests a diverse range of requirements, and also suggests a shift in focus from two years ago, when our data showed China, Japan, USA, Korea and India were the top destinations for Australian companies looking to expand into new markets.
We are seeing particular growth from IT Start-up companies, which is consistent with the rise of the digital economy – but also from Australian medical and pharmaceutical companies looking to find talent in new markets and set up a footprint.
With regards to specific roles that companies are filling in new markets, G-P sees particular demand for country managers – most often because they form the first company footprint on a new territory and are tasked with finding customers first then expanding the business and growing a local team. Sales roles are also common, for similar reasons.
An Aussie homegrown success using G-P as its global expansion partner is the Sydney-based Aurora Expeditions. Using G-P’s EOR through our global employment platform, the arctic adventure company has hired new sales staff in the US and UK recently, despite a lockdown on cruising during the pandemic. As a result, Aurora Expeditions were able to establish a sales presence in these new markets very quickly, with little risk.
Aurora Expedition’s CFO Mick Mag said: “Setting up in a legal entity in a new country is not only time consuming but also creates additional layers of complexity around compliance and other potential local requirements. For a business with limited resources this level of administration is not only unwanted but can create additional compliance issues to the point where it becomes a consideration as to whether it is worthwhile to pursue.”
Another key advantage of using an EOR is the widening of talent options because instead of hiring candidates within Australia, Aussie businesses can hire employees outside of Australia to fill sought-after roles that are in high demand. Consequently, it also allows Australian jobseekers to be remotely hired for roles outside of Australia too – a real salve for the ongoing global talent crisis.
Tech roles are in demand globally, with application developers listed as the second-most in demand position in Australia, and ICT business and systems analysts listed at number nine. This is especially pertinent when accounting for the urgent need for many companies to digitally transform. Consumer sentiment now dictates that services are available online 24/7 and will move to another service provider if the experience doesn’t meet their expectations. It is critical for applications and services to be seamless across multiple channels. Therefore, skilled technical employees will remain in demand and must be sourced from somewhere – lest the organisation falls behind its competition.
With a real shortage of available employees in Australia, progressive companies are finding the resources they need wherever that talent happens to be through the use of an EOR. It is now completely possible to find a data scientist in Malaysia and a developer in India and have them fully operational within the organisation in a matter of hours. By partnering the right EOR like G-P, it is perfectly feasible to find a skilled professional in another jurisdiction and have them employed compliantly according to local tax, insurance and employment rules – within days if not hours.
More companies are waking up to the new realities facing them and finding better ways to maintain their productivity in challenging economic circumstances. Those that are open to change will succeed, maintaining a competitive edge. It may just be time for a rethink on finding and hiring the talent your company needs.
Charlie Ferguson is General Manager, APAC at G-P.
